FxWirePro: 'Bearish Crab' pattern on NZD/USD raises scope for downside, good to short break below 1H 200-SMA

• NZD/USD is extending range trade, hovers around 5-DMA at 0.7278.
   
• The pair struggles to break through 0.73 handle, finds stiff trendline resistance at 0.7375.
   
• Technical indicators are at overbought levels with scope for reversal into neutral zone. Further, MACD is on verge of a bearish crossover on signal line.
   
• We evidence a 'Bearish Crab' pattern on daily charts which raises scope for downside.
   
• 1H 200-SMA currently at 0.7259 offers strong support. We see weakness on break below.

Support levels - 0.7259 (1H 200-SMA), 0.7201 (23.6% Fib retrace of 0.67804 to 0.73314 rally), 0.7181 (20-DMA)

Resistance levels - 0.7331 (Jan 17 high), 0.7375 (trendline), 0.74

Recommendation: Good to go short on break below 1H 200-SMA, SL: 0.7325, TP: 0.72/ 0.7180

FxWirePro Currency Strength Index: FxWirePro's Hourly NZD Spot Index was at 50.4858 (Neutral), while Hourly USD Spot Index was at 20.5778 (Neutral) at 0440 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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